Dick’s Sporting Goods delivered 1.8 percent same-store growth in the second quarter but profits fell well below Wall Street targets due in large part to inventory shrink. The retailer slashed its earnings outlook for the year on the Q2 shortfall and expected margin pressure in the second half and launched a business optimization program that reportedly includes the layoff of 250 corporate employees.
In the second quarter ended July 29, sales rose 3.6 percent to $3.22 billion, in line with analysts’ consensus estimate. Same-store sales gained 1.8 percent, driven by a 2.8 percent increase in transactions and continued market share gains. Same-store sales were down 5.1 percent in the 2022 second quarter.
Net earnings fell 23.5 percent to $244 million, or $2.82 a share, from $319 million, or $3.25, a year ago. Results were 99 cents short of analysts’ consensus target of $3.81. Non-GAAP EPS in the 2022 second quarter was $3.68 after adjusting for the retirement in April of the company’s convertible senior notes.
For full details about second quarter results for Dick’s Sporting Goods, including a sharp drop in stock price, a big EPS miss, a downward revision in EPS guidance, corporate staff cuts, the impact of outdoor inventory overhang and retail theft rings impacting margins, go here:
EXEC: Dick’s CEO Talks Q2 EPS Miss, Inventory Woes, Retail Theft and Staff Cuts
